Finance for knock down rebuilds
Knock down rebuild finance
The old house comes down, a modular home goes up.
Woolong Capital finances modular knock down rebuilds on land your company owns. The new home is built in the factory while the site is cleared, Woolong pays your builder in 5 certified stages, and at handover the facility becomes a principal and interest loan of up to 10 years.
At a glance
Proposed terms, indicative and subject to credit assessment.
Who borrows
An Australian company, or a super fund's company trustee, that owns the home and rents it out
The site
Land your company owns, with a registered mortgage to Woolong
Your equity
20% of the contract price or more, paid before the first draw
Loan size
70% of the security or less, with the land and the finished home valued together
The build
Up to 6 months in 5 certified draws, with interest added to the facility
Repayments
Monthly principal and interest for up to 10 years from handover
How a modular rebuild is funded
Your builder makes the new home in the factory while the old house comes down and the site is prepared, so the 2 jobs run side by side. An independent quantity surveyor certifies each of the 5 stages before Woolong pays your builder, and title to each stage passes to your company the same day.
The finished home is delivered, installed and connected. From handover the facility is repaid monthly, principal and interest, for up to 10 years.
Valued as land and home together
On land your company owns, the valuer reports the land and the finished home together, and Woolong takes a registered mortgage over the land. With equity in a property a director owns, that makes up the security, and the loan stays at 70% of it or less. Every facility carries the same 5 pieces of security, all in place before the first draw. They are listed with the full terms.
Questions people ask
Does the company need to own the land?
Yes. Knock down rebuilds are financed on land your company owns, with a registered mortgage over the land.
Can I live in the new home?
No. Modular Build Finance funds homes your company owns and rents out. It doesn't fund personal or household use.
When do repayments start?
At handover. During the build, interest is added to the facility, and there is $0 to pay.
Ready to rebuild?
Send us the title and your builder's plans, and we'll shape a facility around your new home.